California shoppers, tax offices stocking up in advance of Amazon tax collection

September 13, 2012

Amazon will begin collecting sales taxes on California purchases Saturday, Sept. 15. In advance of the deadline, online customers and tax offices are stocking up.

But they're shopping for different things.


Man shopping onlineOnline shoppers are looking to pick up products before the 7.25 percent state sales tax (plus up to 2 percent more depending on the buyer's location) is added to Golden State cyber purchases.

State tax officials, meanwhile, are looking to hire
nearly 100 new state auditors
, lawyers and other specialists to ensure everyone complies with the new online tax.

The state Board of Equalization expects to spend $10 million over the next three years on new online sales tax enforcement employees.

But that cost will be quickly covered, say state officials, thanks to the $300 million a year in sales tax that the online effort is expected to bring into the state treasury.

More than just Amazon affected: While the new tax law is referred to as the Amazon tax and around $85 million a year in tax revenue is expected to come from the online retail giant, it will apply to many more companies.

The law applies to out-of-state retailers that have sold more than $1
million to Californians in the past year and have had more than
$10,000 in sales referred by an in-state affiliate.

Of course, California already has a use tax. This is the equivalent of the state's sales tax and is due on items Californians buy elsewhere but use in the state.

But on the Left Coast as elsewhere, the use tax is hard to enforce and effectively useless.

Come Saturday, Sept. 15, that's no longer a problem for California sales tax collectors.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Very nice write up!
    If there was ever a time for accounting students to move to the warm climate of California, this is it. There is an influx in tax regulation in California if you didn’t get the drift from the article.
    With Amazon doing so much more taxing, job openings are sure to follow. Not only is the field of accounting and taxation growing at an amazing rate, it’s proving recent grads immediate employment. At some point the tax buzz will dissipate from California leveling off hiring but their are tactics and strategies that you can utilize. Here is a resource link for recent accounting graduates discussing employment right out of school. Enjoy, http://www.cpaexam.com/graduates-with-accounting-degree-land-stable-job/
    Warmly,
    Grant Webb
    Bisk Education
    grant-webb@bisk.com

  • “We support public administration and local governments in driving profitable projects and working with our private partners.”
    http://b2gconsortium.com

Comments are closed.